Compass pays £40m to settle out of court

20 October 2006
Compass pays £40m to settle out of court

Compass Group has agreed out-of-court settlements on two lawsuits relating to procurement irregularities at the UN.

In March this year, Monaco-based rival ES-KO and Swiss-based caterer Supreme Foodservice brought lawsuits in New York against Compass totalling £600m.

They alleged Compass division ESS obtained food supply contracts for UN peace-keepers in countries such as Sudan, Lebanon and Syria through rigged bids and fraud.

After a two-day mediation session in New York last week, Compass agreed to settle the two cases - for less than £40m - but admitted no legal liability.

Compass chief executive Richard Cousins said: "This settlement is a major step in putting the matter behind us. I am now seeing through a programme of systems and control changes to ensure that all lessons are learnt from this experience."

Seymour Pierce analyst Kevin Lapwood said the settlement averted the possibility of "horrendous legal costs further down the line" for Compass.

By Tom Bill

E-mail your comments to Tom Bill]( pays £40m to settle out of court) here.

Get your copy of Caterer and Hotelkeeper every week -

[Sudoku]( "A new puzzle every day!") Join the craze and play Sudoku online!
[Newswire For the latest hospitality news, sign up for our e-mail news alerts.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking